In a 9-page report titled "Bloomberg Crypto Outlook: Bitcoin Becoming Prudent", Bloomberg pointed out three main reasons why demand for Bitcoin will increase in the future.
# 1 The number of active Bitcoin addresses continues to increase, signaling a bullish period
As Bitcoin is increasingly being accepted as a type of financial asset and as a means of payment, the number of active BTC addresses has started to grow higher.
According to several studies regarding the value of the leading cryptocurrency with its active addresses (according to Coin Metrics), Bloomber said Bitcoin is currently undervalued 16.5%, in the region of $ 11,800.
The 30-day average active addresses from Coinmetrics recorded on August 4 show Bitcoin's price should have moved above $ 14,000, compared with around $ 11,000 on an automated scale basis since 2017.
In an analysis by Santiment - blockchain analytics company - found that "3/8 is the third time the number of daily active addresses reaches 1.08 million addresses, since July 1".
Multi-user page: btc to paypal
Santiment sees this trend as a potential sign that Bitcoin's price "will soon return to the $ 12,000 range".
# 2 Grayscale continues to buy Bitcoin
Grayscale Investments is currently continuing to accumulate BTC in bulk for its clients who are institutional investors.
The Grayscale Bitcoin Trust currently holds over 400,000 BTC, double from last year. According to our calculations, the money flowing into GBTC over the past year has been used to buy back a third of the new Bitcoin supply. If this rate of cash flow does not decrease, about half of the supply will be bought.
The company is also currently buying large amounts of Ethereum through Grayscale Ether Trust. Besides, the number of Bitcoin futures is also going higher.
# 3 Bitcoin's correlation with gold is on the rise
Due to the current macro trend, Bitcoin's correlation with gold is increasing. "Bitcoin's correlation with gold has reached a 52-week high of 0.35." This shows that the leading cryptocurrency is evolving into digital gold.
The rampant printing of money by central banks has accelerated gold's growth, helping the price of the precious metal to consistently set record levels over the past few days. And with the current high correlation, Bitcoin price will benefit in the near future.